Multi-product exporters, productivity, and the margins of Malaysian exports: A firm-level panel data analysis
Keywords:
International trade, Firm heterogeneity, Multi-product exporters, Firm productivityAbstract
With balanced panel statistics of 1200 Malaysian manufacturing firms from 2004-2006, this paper explores the importance of multi-product exporters and examines the relationship between export margins and firm productivity as well. Firstly, we decompose the individual-level exports into two components, the number of export destinations (extensive margin) and average exports per destination (intensive margin). Secondly, we use the Heckman selection approach to examine the relationship between firm productivity and export margins. Our findings suggest that more productive firms export more, serve more export destinations, and have greater average export flows per destination. Furthermore, most of the aggregate rise in individual exports associated with greater firm productivity comes from the intensive margin. These findings are consistent with the theoretical predictions of Mayer, Melitz, and Ottaviano (2014).
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